Tanzania sets eyes on $1.2 billion renewable energy deal
The Tanzanian government has formalised an energy generation agreement with Pougex Energy Proprietary Ltd for a 450-megawatt wind power project anticipated to require an investment of approximately $1.2 billion.
“This is the biggest project of its kind on the isles. Its infrastructure will be set up out in the sea, so there will be minimum inconvenience to the people. We commend these investors for deciding that Zanzibar is a safe investment destination. We welcome other investors as we continue to improve the investment climate,” Joseph Kilangi, Tanzania Minister of Water, Energy and Minerals is quoted by local media the Citizen.
“A feasibility study will be carried out and will be followed by the construction of the relevant infrastructure in Zanzibar. It will be an environmentally friendly project since the infrastructure will be set up out at sea and on shores,” he added.
The Engineering Projects and Asset Management Director at Pougex Energy Proprietary, Charles Lwanda highlighted that the favourable investment environment established by the Zanzibar government was the primary factor that influenced the international firm's decision to invest in the region.
“The great thing about this energy project is that it will be sustainable and long-lasting since it will be using a renewable source. It will also help reduce carbon emissions and will create jobs for the local population,” Lwanda said.
Zanzibar presently receives 125MW of electricity from mainland Tanzania through the Tanzania Electric Supply Company (Tanesco), accounting for approximately 90 per cent of the archipelago's total electricity requirements.
